Ganeshram Jayaraman of Avendus Spark discusses the portfolio construct with a focus on defensives and industrials. He is cautious on the macro outlook, expects volume growth to be the key driver, and highlights the evolving consumption patterns in the rural economy. PSU banks and sectors dependent on government capex may face challenges.
Stock Market today: Jefferies December 2024 Nifty target at 24000 indicates about 12% upside. Relative Nifty valuation are better and market could touch new highs as per Jefferies. FPI flows may improve as domestic flows remains supportive. India’s multi-year capex cycle has also started unfolding.
GoI slashed the corporate income tax rates in September 2019, which is estimated to have boosted the earnings of large corporates by 8-10%. Ideally, an increase in earnings should have been used for capex but, instead, higher earnings found their way into increased dividend payouts, raising the dividend payout ratio further to 66% in 2019-20.